The regulatory aspects of short-term rentals in the EU

The document titled "The regulatory aspects of short-term rentals in the EU" is an in-depth analysis authored by Claire Colomb, a Professor of Land Economy at the University of Cambridge. It was prepared for the Policy Department for Transport, Employment and Social Affairs of the European Parliament, specifically requested by the Special Committee on the Housing Crisis. This analysis emphasizes the regulatory challenges and impacts of short-term rentals (STRs) on affordable housing across the European Union.

Short-term rentals have surged in popularity, significantly affecting housing markets in various European cities. The rapid growth of STRs, facilitated by digital platforms, has led to numerous debates about their effects on housing affordability. STRs are often managed by professional operators rather than individual homeowners, exacerbating the scarcity of long-term rental options. In tight housing markets, this trend has contributed to rising rental prices and the displacement of long-term residents, particularly in popular tourist destinations.

The document outlines the diverse regulatory frameworks surrounding STRs in the EU. Different local governments have adopted a range of regulatory measures, from minimal restrictions to strict controls. Some cities, like Barcelona and Berlin, have introduced authorizations and time caps for rentals, while others have opted for more laissez-faire approaches. The variety of regulations reflects local socioeconomic conditions and tourism patterns, emphasizing the need for tailored policy responses.

Effective enforcement of STR regulations faces significant hurdles. Key issues include the lack of precise data on STR ownership and operation, insufficient resources for monitoring, and limited cooperation from digital platforms. Public authorities often struggle to obtain accurate information about STRs, complicating enforcement efforts. The new EU Regulation on Data collection and sharing, set to be implemented in the coming years, aims to address these data transparency challenges.

Two critical pieces of EU legislation influence STR regulations: the E-Commerce Directive and the Services Directive. These laws shape how public authorities can regulate digital platforms and STRs, impacting their ability to enforce local regulations. The interpretation of these laws by the Court of Justice of the European Union has significant implications for the regulatory landscape of STRs across member states.

The analysis concludes with policy recommendations aimed at enhancing the EU legal framework to support affordable housing objectives. It advocates for clear guidelines that allow local authorities to regulate STRs effectively without fear of litigation under EU law. The report underscores the importance of monitoring and refining the new data-sharing regulation to ensure it meets the needs of public authorities and addresses housing affordability challenges across Europe.

In summary, the document provides a comprehensive overview of the regulatory aspects of short-term rentals in the EU, highlighting their impacts on housing markets and the challenges faced by local governments. It emphasizes the need for effective regulation to balance tourism growth with the preservation of affordable housing, ultimately contributing to the broader discourse on sustainable housing in Europe.